microsoft buys apple 6 of august, 1997 by johnmichael patrick monty monteith

Why am I reminded of the season finale of Star Trek Voyager? In the final episode of the year, Janeway (captain of the Voyager, of course) realizes that they will be unable to get through the part of space they need to in order to return home. Why? Because it is Borg space. Home of the big bad enemy where they assimilate you first, and ask questions later. They are surrounded by Borg, everywhere. So, instead of trying to fight their enemy, Janeway decides to make a deal with the Borg.

That being said:

Microsoft announced that they will purchase 150 million dollars of Apple Computer stock, about 5% of the whole company. Not only that, but Microsoft will pay an unannounced sum of money directly to Apple computer for access to their technologies. In turn, Apple gets access to Microsoft technology as well, and will place Microsoft Internet Explorer as the default web browser in future Macintosh operating systems.

Be afraid. Be very afraid.

A few months ago I had written a little article about how Microsoft ran out of things to steal from Apple, short of the entire Macintosh operating system. [How Microsoft helped create Rhapsody.] Sure, I meant it as a joke, but now it would seem that the joke is on us. Now, Microsoft could do exactly that. They have complete access to the Macintosh OS, and could steal the whole enchilada, all the way down to the smiley Mac if they wanted. I might be exaggerating slightly, since I have not read the details of the agreement. But, my guess is that the devil is in those details, too.

And it gets worse. All of the new technology to be released in Rhapsody that will leap-frog the current Windows operating systems are now completely available for Bill Gates to steal. He does not even need to wait until it ships. He can start using the technology tomorrow if he wishes. Furthermore, anything that Apple invents in the future is completely available for theft. Keep in mind that Microsoft is the best technology thief in the industry. But now not only are they legally allowed to do it, they get advance notice of what to steal.

Looking for who to blame for this stroke of genius? Look no further than Steve Jobs. There was little question when he started walking the hallways at Apple Computer that the problems would soon begin. [What could go wrong NeXT?] However, this week he has surprised even me with his lunacy. (Is this man smoking crack pipe on his lunch breaks?) Not only has he delayed and jeopardized the very core of Apple's future (licensing), now he has made a deal to virtually give away the best technology to their fiercest rival. Does either of these brilliant moves sound like trustworthy advice to you? Well, maybe if you are Bill Gates.

Steve obviously has a short memory. A technology sharing agreement was arranged not too long ago between IBM and Microsoft, too. In this agreement Microsoft and IBM would work together to develop OS/2, and IBM would have access to Windows technology for the product. The agreement destroyed OS/2, and made Windows the clear operating system choice. Do we really believe anything different would happen with an agreement between Apple and Microsoft? Sure, Microsoft is not writing the Mac software like they did for OS/2, but the very fact they have access to the technology is distressing enough. And the track record of deals like this with Microsoft is anything but favorable for Apple.

Still, even with the lunacy, it is not tough to see why Steve made the agreement. He wants Apple to have access to Windows technology. Why? It will be awfully difficult to sell Rhapsody for WinTel if Rhapsody can not run Windows software. You would be able to count the number of sales on one hand. Now that the agreement is in place, Apple can make their software completely Windows compatible. It is a fabulous idea. But it is an awfully high price to pay for it.

Yet, if the goal was simply to have access to Windows compatibility, surely Apple could have made a less sacrificing deal than this one. Did Steve even look into the option of paying Microsoft a small royalty for access to the technology for Windows compatibility? Why give away the best secrets in the industry for Windows compatibility?

Of course, maybe there is another reason the deal was struck. Maybe Apple knows about some secret Microsoft technology that is so valuable they needed to bet the farm on it. But, I doubt it.

There are a couple of things pointing Apple's way, however, no matter how foul this deal may smell. First is the fact that Microsoft absolutely can not live without Apple Computer. It needs the company, if for no other reason, just to keep the government from breaking the Redmond giant up. [Why Microsoft needs Apple.] Microsoft made this deal because they desperately are trying to make a better product that can suck in more money from their captive audience. They know Apple is the key. Yet, they did not make the deal to put Apple under. There is little question of that. Microsoft needs Apple, and if it comes down to it, I think Microsoft would delay their technology theft if only to give Apple a chance at survival.

The last thing that makes this somewhat easier to swallow is Apple chances of making it work. If Apple Computer can use this deal to develop a Windows compatible version of Rhapsody for both the Mac and for WinTel machines, you can bet there is going to be some serious competition in the OS market for the first time in over a decade. If Apple can put these operating systems together before Microsoft can rape and pillage the Macintosh technology, Apple has a good chance of damaging the very core of the enemy.

Of course, even this knowledge does not change the scariest thing of all:

The Microsoft Borg were sitting outside of the Cupertino walls before.

Now they are walking our hallways.

"Quick! Chakotay, calculate how much time we have before they assimilate us."

"On second thought, Chakotay, don't tell me. I don't want to know."

Hold your breath for the Voyager season opener, and pray Janeway's deal with the Borg was a good one. It may be the earliest sign of Apple's chances.